) to buy from strong buy.
Analyst Jim Liang says the downturn in the optical long-haul market is longer and deeper than he expected. He notes the company forecast Q1 revenue below its $450 million prior guidance, and did not offer further guidance due to poor visibility.
Liang sees $360 million Q1 revenue, and says the communications component industry is in the midst of a significant inventory correction as a result of overbooking and reduced end-market demand. He cut his $2.06 billion fiscal 2002 (June) revenue estimate to $1.44 billion, and cut the $0.08 EPS to $0.02.
Liang also cut the US$30 12-month target to $15.